Cardano (ADA) price has been trading quietly, increasing by just 2.2% over the past week. However, this lateral movement may not last very long. While on-chain data shows the whales are resuming activity, broader market conditions suggest the network may be preparing to change direction.
The next few days may determine whether this slow rally turns into a complete reversal or fizzles out like previous attempts.
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Whales will be added as dormancy begins to build
Over the past two days, Cardano whales with 10 million to 100 million ADA have been quietly increasing their holdings. Their total hidden assets increased from 13.16 billion ADA to 13.21 billion ADA. This would mean an addition of about 50 million ADA, worth almost $32.5 million at current prices.
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The pace of accumulation remains steady, but not yet aggressive. This buying trend needs to accelerate in the coming sessions to confirm our conviction.
At the same time, the Spent Coins Age Band, an indicator that tracks the amount of ADA movement across all wallet age groups, declined from 179.16 million ADA on October 11th to 114.71 million ADA on October 25th, marking a 36% decline.
This decline means the coin is being traded less, an early sign of increasing dormancy. However, we have not yet reached the state of deep holder inactivity that usually signals the beginning of a strong rally.
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The current figure is still well above the September 22 local low of 89.22 million ADA. This low triggered the final short-term rebound. In other words, dormancy is improving, but it needs to get closer to the sub-90 million ADA range. Then the true accumulation phase will be confirmed.
The slow accumulation of whales, combined with the partial dormancy improvement, suggests fundamental formation, but confirmation still depends on how Cardano price reacts near key resistance zones.
Cardano price remains near breakout zone as reversal signal strengthens
On the daily chart, ADA price has formed a potential inverted head-and-shoulders pattern with a sloping neckline, and this formation is often seen before a bullish reversal. While the downward neckline suggests sellers remain active, ADA’s resilience around this level is encouraging.
The coin is currently trading around $0.65, just below the 0.236 Fibonacci retracement level at $0.66. A daily close above $0.66 could confirm the breakout and push the price toward the pattern’s expected target of $0.79. The extended upside zone is at $0.83 and $0.89.
RSI (Relative Strength Index) adds weight to this setting. This indicator measures the balance of buy and sell strength and indicates bullish divergence.
From October 11th On the 22nd, the RSI made a new low, while Cardano price formed a low, a typical bullish divergence. this This suggests that selling pressure is easing and buying power is returning. This type of divergence on the daily time frame often leads to a shift from a downtrend to an uptrend.
The combination of a bullish RSI signal and an inverted head-and-shoulders structure gives ADA a solid technical basis for a reversal.
However, the downward neckline remains a risk. If the price fails to sustain above $0.60, the structure could become invalid and push ADA down to the key support at $0.50.
